captioned by the national captioning institute --www.ncicap.org-- >> business news from the capital region. this is "washington business report" with abc7 national correspondent rebecca cooper. >> thanks for joining us again this week as we look dead business and finance issues here in the washington ar. it was a busy week for t the business of politics. they turnout their attention to new hashire. we wilhave more onon the results coming up. latern the show, it is a new legislate year in virginia and maryland and taxes are hot topic. and two women who are using good tasteo make a living.

in at this city, it is all about selling. the public ige that you prpresent is everything. take a look at h mitt romney went to defending his business principles this week. businesses have toto make sure theirur is top notch. joining g me today, susan davis o of susan davis international. one of the best in theusiness whil presenting an array of clients. what a her tips for sying on top? she joins us now. susan dadavis, thank you for joing u how didd you g grow be one of e biggggest p.r. firms in this town? >> i g guess longevity, first of all. i started 35 yes ago. it has been a long time.

when i started this business there were very few women in the industry was different. there re no niche businesesses, no hispani agencies oafrican american agencies. >> there wasas no mainstream media. >> that is right. of course, overtime, things have really changed. this c community offers so much opportunity for those who want to be in the b business i am in because you have local regional federal and international. you hahave many auaudiences with many o opportutunities. we worked with clients in each of those cmunities. sometime they blend and sometimes there are several separate. there is a lot of business still in this arerea. >> what are the tips of the

trade in terms of masterinthe beast as s it grows? how do you stay on top of all of the different geographies locations t that you have to focus onon? >> we have created niches in a few areas. i would look atat the tools of the trade, and the social media would be one of them. it is a too but the thining before you get to use in all of these tools of the trade, you really have to think about strategy. ththat is something that a lot of companies do not begin with or even e end wit >> give us an emple. >> if you are going to do a campaign, an event water you really trying to get out of this? who doou want to b in the

audidience? what kind of headlines do you want written abouthis? sometimes those questions are not internally being asked. ey see a need and they y decide ththey have to respond but they may not be thinkingng compreheively about what can be accomplished or if itan be accomplished. more and more, we are trying to work with ceo's and execs abt strategy first.. true redo this platform or this type of event? -- should try this plplatform or this type of event? >> let''s take a look mitt romney. it was so interesting bng there. i was at the event, the breaast whwhere he has made a commtbout firingg people. it was very much in ththe context

of -- he said immediately i like ring people who do not provide good services. he was talking a about giving consumers the power to demand good services from a busess. we all want good services bu it went horribly astray. give us s some ps. how do you takee somethingng that has been saiout of context and now it is all over the e media in some many different formrms? >> this is a really great questi because witith 24/7 media,a, anythg can be taken out of context. you have to choose your words carefully. if p people turn them around, i think you have to immmmediately respond. you have to p it to context and be veryransparent about what you are talking about. it is reaeallyasy to have that happen in a campaign becse y you

have somome many peoplple who o are close to whatou are doing. in a general busiss sense i think you can be measured about what youou think. the messagee is incrededibly impoportan reaffirmrming tt message over and over is incredibly important. it is the kind othing that we work oftenith our clieients on . you have to really be ccerned about all of your stakelders. nonot just the person you are talking to at the time. >> you have suchn array o of clies from m governrnment to commercicial industry.y. n yo think of one campaign where it m made a difference for the success othat business or brand that you we able to be a pa of?f? >> i le tescapepe -- i i wou like to o think everything fits in that cegory. >> why do we needed to hire a

publicelatioions company when we can be the b our o own.r.? >> when we e first arctic, an certainly in the 1970's and 1980's, agencies were asked to be executor's. they w were told we are going to do this but we ne extra arm and legs. that has shifted over time. we are now in the decision makiking r room and helplping clientss think throughh the strategy befofore they go to execution. i ththink at hasas madee a very big didifferenence in term of decisions that are made and actions that are taken. >> thahat is good buys for any business. susan d davis, a real pro in the business. thank you for being hehere on "washingngton busine report." after th break how to better

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>> welcome back. we w want to take the advantage of this spotlight on small business to talk to to people who are taking a close look on what is happeng in taxes. first, it wass an odd week in go politics. it is not an argument you hear very often in republican

circles. a new year for legislatotors in maryland. will let me more taxes? we want to get to that first. joining us today, more air r time in new hampshire than the candidate, peter morici, professor of economicst the university off maryland. d headeded toannapolis but here day, d delegates kathleen dumais from montgomery cnty. peter, i want toto start with you onhe trade deficit bececause you were widy quoted on friday, calling g the latest nonot so good tre numbers a negive stimulus. what did youean? when we have a trade deficit, but does not return to yer exports, that has the opposite effect of our budget deficit. that is why the economy has

grn so slowly. the trade deficit is nearly $6 llion a year. it is the single most reason why the economy grong at 2% than say 4%4% or 5%. if i could solve the trade deficit for you, i could give you 500 million jobs frothe public sector. oil and china. the president promised to do somethining about china's undervalued c currency and has not. he i promising to do something, mitt romney. the other thing is oil. the democrats will not drill r oil. >> ththat iss dragggging on the small businesses and large businesses alike. the small businesses are concerned with a balln out there fated out t there b by gov.

o'malley talking about a sales tax. i have heardrd some of your fellow colleagues say no one saw the coming. what is your take on this suggestion? >> we have a $1 billion deficit. it is exactly what you said, a trial balloon. there is going to be no appetite in the general assemembly to pass a hike in the les tax. itit really comes after a long dete with a blue ribbon mmission. the maryland chamber of commerce supports the gas tax, the greater washington board of tre, andnd anothther comparablble group in baltimomore. >> i want to get to the gas tax later, but let's get back to the sales tax.x. it sounds to me that it is a

trial balloon that may be a non- starter. >> it may be bit of a non- starter. we havdiscussed whwhether or not we need to look at ourselves tax and not so much the 6% should go up but whether we should look at taxing o other kinds of services. or food. when you are comparing taxes between one state or another, it is a question of what are you texting. in maryland, it iss 6% butt is not on food or groceries. >> water your suggestions? anything above 6% is punitive. i think also the statete of maryland has not fully grasp the need to do thihings more efficiently. i tnk it needs to te a harder look get that. taxes are noconsidered when we do those e confrontations with

economist. texting people when their incomes are rising - -- taxing pepeople w when their incomes are rising -- >> we have to come back with a second segegment because there is much more to discuss. stay with us. we will talk about mitt romney and more spending stay with us.

ahh... so much better than last year. [ both screaming ] throw the food out the window! throw the food out the window! [ growling ] never again. everyone deserves a great vacation at a great price. get on board a carnival cruise and get more fun for all. >> w welcome back.k. both legislatitive bodies in virginia and maryland got backck to work is week. here with me to talk, delegate

kaleen dumais and pet morici noted an economist frorom the university of maryland. we were just talking about sales taxes. virginia vs. maland. what are somee of the thgs that could be donone this year to be more competitive? one of the fdamental differences is that in virginia there is an emphasis on doing things sparsely limited government. rylandnd has a much more agaggressive government and the people wanted that way. montgomery county voters e diffent an fairfax county voters. >> thehere is definitely not a nuclear-free zone anywhere in the state of maryla. >> and there is never likikely to bebe. i think we have gotten to the point in maryland where they needed to seriously look at what they are getting out of every

bureaucracy at every lev. the question is are too manyny people running around to try to achieve the sameme purse? i think that is really an sue. >> respond. >> i think the good news is wee are trying to address that. i he to give governor 'malley some credit. we are working witith all of the regulations. what do i hear from small businesses? not so much that there is too much government. what i hear is stay out of our y. let us do our job and not necessarily get involved. >> the regulatory burdens. >> the government is taking a look and that, and thehe goverr issu an executive order in october toake a look at streamlining things. he has a new web sites particularlyn permitting

processes which is something i repeatedly heard from small bu businesses that is a problem in maryland. >> i would be more encouraged if that was accompaniedy the bureaucry itself shrinking to save some money. asking bureaucrats to do that is like asksking alcoholics to give the bottle. that apppplies everywhere you go because people define thselveses with how many people theyare rking for them. they are going to have to figure out how to do more with less people. talking about the gas tax. i want to get back to that. there is support for inincreasing the gagas tax from democrats republicans, and the business commununity. the are other republicans who say this is the wrong way to do

it, that there is no such thing as a transportatiion lked box. the money get robbed fromom peteter to pay paul. >> there wiwill be a constitutional amendment that sasays at this time we really mean it. >> are you cononfident that the constitutional amendment will go hand in hand with any increase in the gas tax? >> yes, i am. we are not going to vote for that tax if it is n directed toward transnsportation. marilyn, number va., d.c., marylandnd, we a known for having the worst traffic nightmare. maryland passed to address the infrastructuture issue. >> i want to turn to presidential politics. you have been writing about mitt romney. two things i never thought i would see in n a lifetime.

lou dobbs become a populist, and republans attacking another republican. very clearly in the context of firing svice providers that he likes to fire peopleho are providing core services. asas a consumer, you should be ablele to say you are not providing services that i need and i will take my money elsewhere. >> that is whatappens. the big story in republican politics right now is ththe fact that the front runner, mitt romney, made his money at b bai a private equity firm, and p private equity firms make their money by firing pple. >> we clicked that sound bite so tightly, and they did it well -- >> this was his first b error.

>> staples, sports authority -- >> and ap to accompany. thatat is probably true. the prlem is those or 15 companies to shape up and maybe three will wk out. in the others, they are e laying people off. >> sometimes you have to fire ople to save a compapany and to save jobs in the long run. it is disingenuous for him to say he created 100,000 jobs. >> you can cut eitither way. private equity firmsms have a very short-term view. they shrink it down and they want to flip it so they tend to over s sell its val to investors. >> wt isoing to be the democrat's way for handling this? ththis issue may be worn out by thtime it comes up to a

general election. >> i think the democrats will have to put out what jobs they have created. we saw a record drop last month. in maryland, 27,000 jobs over ththe last quarter. >> how much h does the governor credit -- get credit for that versus the private sector? >> it is s a combination. we are not going to get out of th economic crisis without both the private d public sector. >> i have to wrap itit up there. ththank you so much for joining us.. after the breakour number of the week. it is a negative.

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sub! ♪ i'm feelin' subway ♪ ♪ let's go ♪ >> welcome back. our number of the week is $26.3 million, how mh moneyey montgomery c county lost in state fundining as a penalty for spending less o on education. we want toause just a moment to wh our execucutive producer well as he spends this week with family lett us all joined togethero fifind a cure for alzheim's. we hope you jn us next w week. think you for joining here atat "washingngton business report."

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